A sole proprietorship enterprise shall, in accordance with the taxable items of "income from production and operation of individual industrial and commercial households", apply the five-level progressive tax rate of 5% ~ 35%, and calculate and collect personal income tax. This kind of personal income tax is somewhat similar to the enterprise income tax of other enterprises, and there are provisions for prepayment. No matter whether there is a loss or not, a declaration form must be submitted to the tax authorities.

Notice [2000] No.91of the Ministry of Finance and State Taxation Administration of The People's Republic of China on Printing and Distributing the Provisions on Individual Income Tax for Investors in Sole proprietorship Enterprises and Partnership Enterprises.

Article 21 When paying individual income tax in advance, investors shall submit the Individual Income Tax Return for Investors in Sole proprietorship and Partnership Enterprises to the competent tax authorities, and attach accounting statements.

Within 30 days after the end of the year, investors shall submit the Individual Income Tax Return for Investors in Sole proprietorship and Partnership Enterprises to the competent tax authorities, and attach the annual final accounting statement and the prepayment personal income tax payment certificate.

Where an investor establishes two or more enterprises, it shall indicate the annual taxable income obtained from other enterprises when handling the annual tax return with the competent tax authorities in the place where the enterprises actually operate and manage; If a partnership enterprise is included, it shall submit a summary declaration form of individual income tax of partnership enterprise investors, which summarizes the income of all enterprises, and attach the annual final accounts of all enterprises and the personal income tax payment certificate paid in the current year.